Competitiveness and Comparative Advantage of Wheat (Triticum aestivum) Production in Kano State, Nigeria

Abstract

This study assessed the competitiveness, comparative advantage, and policy effects of wheat production in Kano State, Nigeria. A multistage sampling procedure was employed to select 274 wheat farmers from three major wheat-producing Local Government Areas: Kura, Bunkure, and Bagwai. Primary data were collected using a structured questionnaire. Competitiveness and comparative advantage were evaluated using private and social profitability measures, Private Cost Ratio (PCR), Domestic Resource Cost (DRC), Nominal Protection Coefficients on Output (NPCO) and Input (NPCI), Effective Protection Coefficient (EPC), and sensitivity analysis. The results revealed that wheat production generated positive private profit (₦580,823.92 ha⁻¹) and social profit (₦319,009.74 ha⁻¹), indicating that the enterprise was both financially profitable and economically efficient. The estimated PCR (0.44) and DRC (0.58) showed that wheat production was competitive and possessed a comparative advantage. The NPCO (1.27), NPCI (0.98), and EPC (1.36) indicated that existing agricultural policies provided positive incentives to producers. Sensitivity analysis further showed that wheat production remained competitive under moderate changes in output prices, production levels, and exchange rates; although substantial declines in output prices reduced competitiveness. The study concludes that wheat production in Kano State has strong potential to support Nigeria's wheat import substitution strategy. It recommends sustained investment in irrigation infrastructure, improved seed systems, agricultural mechanization, extension services, and well-targeted policy interventions to enhance the long-term competitiveness and sustainability of domestic wheat production.